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Engulfing Candle

Gold snooked many... Previously mentioned that Gold was in a downtrend... and despite a December rally that started a lot of Gold-to-the-sky talk, I had doubts and hence, no update post as I was patiently observing. Friday proved my suspicion correct as Gold dropped well below the 1900 level after breaking above 1950 for a day. The Friday Gold drop wiped out the month of December's gains in a day. Big hint here. Nonetheless, one of the major reasons for being suspicious about the rally was that the Top 8 traders were obviously selling Gold, not buying. The bottom most panel (yellow line indicator chart) is the Top 8 Net positions. From May to June 2020, the Top 8 traders were accumulating already. And when the non-commercials started joining in the accumulation party, Gold prices took off. December 2020, the Gold rally was supported by retail and clearly, non-commercials (until Christmas). However, it is clearly observable that the Top 8 Traders were distributing instead. Over and above that, technicals show that Gold has a trend change, and needed to consolidate first. MACD was in bearish territory, and price just bounced off 1800 support and channel support despite that there was a large harami type candlestick pattern indicating a couple weeks of Gold rally in December. Well, that has ended... promptly. This week, we saw a break out of channel resistance, and then failure of that break out. Bad news... this typically suggest a breakout on the other side to follow. This can be targeted to be around Feb, at about 1650, if it were to plummet over the next few weeks. Probable at this point as the massive bearish engulfing (after channel breakout failure) is strongly suggesting... I expect to see some small bounce, followed by more of a dive in Gold over the next two to three weeks. Breaking down and out of the channel support represents good opportunities to look for a trend change (back to bull trend). Oh wait... there is a BRB system buy signal, which I intend to discretionarily ignore for now. Perhaps take into consideration IF there is a bounce off the 55EMA in about two weeks. Anyways... Do see my following post about the USD (and the GDX too). It spiked, and contributed to Gold dropping fast on Friday.
COMEX:GC1!
by Auguraltrader
NIO: Opportunity ahead! Bullish signs near a dual-support!Hello traders and investors! Let’s see how NIO is doing today! Ok, NIO is dropping today, but I see no reason to panic. Right now, NIO is doing a Bullish Engulfing , above a dual-support level made by the purple line at $ 50.50 and the 21 ema. This purple line is my guide for the short-term, as we discussed in my last NIO analysis, which you can check in the link below. Under this line, NIO could fill the gap and even do a sharper pullback. But this shouldn’t scare anyone here, as the trend is still bullish, and there are no reversal or pullback signs yet. The daily chart is looking very bullish, and if NIO corrects, we can expect it would hit the 21 ema in the daily chart again, but so far, there is nothing indicating that this is going to happen. Remember: The $ 50.50 is the key point. The volume increased a lot yesterday, reinforcing the idea that the trend will resume, and as far as I know, today’s drop was just an opportunity. As crazy as this sounds, the target is the $ 57.20 , as we discussed in my last analysis (again, link below). Let’s watch NIO closely, and remember to follow me to keep updated, as I do daily analyses on NIO and other stocks. And please, support this idea if it helped you! Thank you very much for your support! Have a nice day.
NYSE:NIO
by Nathan_The_Finance_Hydra
22
TSLA: Some scenarios to work with.Hello traders and investors! Let’s see how Tesla is doing today! First, it is trading near a support level, the 21 ema, which is holding the price quite well. If TSLA loses the 21 ema then it would seek lower support levels, like the red line at $ 521, or the black line at $ 641, but since the trend is bullish, we can’t count too much on that scenario. The odds are Tesla will defeat the resistance level at $ 668, and this could make it hit the $ 684 again. Right now, in the hourly chart, we have a strong candlestick pattern called Bullish Engulfing, and this increases the chances of an upside movement. In the daily chart, it seems Tesla is doing a sideways movement , and it wants to hit the 21 ema again. The volume is very low, which was expected, since we are between Holidays, but this also tells me that Tesla is not in danger. There are no pullback or reversal signs around, and in the worst-case scenario Tesla would hit the 21 ema again. Let’s keep monitoring Tesla closely, and if you liked this analysis, please, support it ! And I invite you to follow me to keep in touch with my daily updates. Thank you very much.
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
4
EDUCATION: Engulfing Candlestick PatternHello, dear subscribers! The topic of this article is the Engulfing candlestick pattern. To be honest the candlestick patterns are almost useless if you use only this. But this is a great trend confirmation, so we will consider engulfing pattern with the Alligator Indicator which was described in one of the previous articles. What is Engulfing Pattern? The Engulfing Pattern can be bullish and bearish. The bullish one is the situation when the red candle is engulfed by the next green candle. It is not important if the candleweak was engulfed too or not. This is a subject for thought. Also it does not mean if the only one green candle or two consecutive candles absorbed the previous red candle. The bearish Engulfing candlestick formation is exactly the opposite situation. The Strategy You can search by yourself the ehgulfing patterns on the chart and notice that it generate a lot of fake signals, it means that we should use the indicator for the trend definition. In our example we use the Alligator indicator to do it. As you already know the Alligator has two phases - the sleeping and feeding time. If the sleeping time is over the jaw, teeth and lips of the Alligator become wider. At this point we should find the Engulfing formation to confirm the new trend. You should enter a long position at the point which you can see on the chart.
Education
by Skyrexio
USDCAD - Bearish CrabAs I'm going through my chart, I've spotted a unique long shadow candle on the 1hourly chart(left), not only the candle was long, it just touches the resistance level, you may plot your own chart to see the full story. A pretty cool setup that the software and I both spotted on the 1-hourly chart(right), the harmonic patterns - bearish crab pattern with the bearish engulfing candle(in this case I don't see any major changes on the 1hourly chart in the next 6mins).
Short
by RaynLim